Personal Loans About

Personal loan is a type of loan you can borrow from a bank, credit union, or online lender to use for various personal expenses. Here's a simple breakdown

Key Features of Personal Loans: 1. Purpose: You can use the money for almost anything, like medical bills, weddings, home improvements, or consolidating debt. 2. Unsecured: Most personal loans don’t require collateral (like your house or car), so you don’t risk losing an asset if you fail to repay.

3. Fixed Amount: You borrow a set amount of money, like Rs. 5,000 or Rs. 20,000.

4. Monthly Payments: You pay back the loan in fixed monthly installments over a set period, usually 1 to 5 years.

5. Interest Rate: The lender charges interest on the loan, which is the cost of borrowing the money. Rates vary depending on your credit score and the lender.

How to Apply:

1. Check Your Credit Score: A good score helps you get better rates.

2. Shop Around: Compare lenders for the best interest rates and terms.

3. Apply: Submit documents like proof of income, ID, and financial details.
4. Approval: Once approved, you get the money, usually within a few days. Benefits:

Risks:

• High-interest rates if your credit score is low.

• Fees, like origination or late payment charges.

• Missing payments can hurt your credit score.